Silvergate is the second-largest bank in the US that deals with cryptocurrency companies, ranking only after Signature. It acts as a crucial link between the crypto world and traditional fiat currencies. Recently, Silvergate has decided that the best course of action, given the regulatory changes in the industry, is to gradually wind down its operations and voluntarily liquidate. The closure plan guarantees full repayment of all deposits. In early March, Silvergate had already announced that it would discontinue the Silvergate Exchange Network (SEN). Several crypto exchanges have already confirmed that they have not been affected by their association with Silvergate and that their clients' funds are safe.

Silvergate, a banking partner of the bankrupt entities FTX and Alameda, will pay fines totaling $63 million to the Federal Reserve and the California Department of Financial Protection and Innovation (DFPI). Of this sum, $43 million will be paid to the Fed and $20 million to the DFPI. Additionally, the SEC seeks to impose another $50 million in penalties on the company.

According to the Federal Reserve's investigation, Silvergate Bank faced significant challenges due to its exposure to high-risk cryptocurrency deposits and ineffective upper-level management. A significant portion of the bank's deposits were sourced from crypto companies, which lacked traditional insurance and failed to generate substantial interest income.

On November 12, Bitcoin surged toward the $90,000 mark, though it hadn't crossed it at the time of this writing. That day, BTC's market cap also surpassed that of silver, which is valued at around $1.72 trillion.